State Retailers Group Back “E-Fairness” Bill
An Illinois retailers group is endorsing bills in Congress that could settle the battle over sales taxes between online sellers and brick-and-mortar stores.
Illinois Retail Merchants Association President David Vite said his group welcomes both versions of the Marketplace Fairness Act, saying they would create uniform nationwide definitions and rules for state sales taxes --- making it easier for online retailers to collect those taxes from buyers in every state. For instance, he said states would have to agree on how they categorize items for tax purposes.
"What is clothing and what is an accessory?" Vite said. "So if clothing is taxed as a tie --- an accessory, or is it part of clothing? If you're selling food, are the definitions the same? That has to occur, and there has to be some very simple remittance requirements --- a single form and those kind of things. And if the state certifies that they do that, they would be eligible to participate."
Stephanie Sack owns the Viva La Femme shops in Chicago, which sell clothes to plus-size women. Speaking at a news conference in support of the bills, Sack said online sellers have an unfair advantage, because they generally don't collect state sales taxes like she does at her stores.
"The advantage that the Internet has - no matter what, where, when, or who - is a government sanctioned 10 percent markdown," Sack said.
Amazon.com has come out in favor of the Marketplace Fairness Act, while some other big online sellers have stayed away. Overstock.com said it supports another bill, called the Equity in Sales Tax Collection Act.
Vite said that bill is similar to the Marketplace Fairness Act, but he said the bill favored by Overstock provides a "small business exemption" for annual sales of up to $30-million --- a level he said is too high.
U.S. Sen. Dick Durbin (Ill.) is co-sponsoring the Marketplace Fairness Act in the Senate, while U.S. Rep. Jesse Jackson Jr. (D-Ill.) is co-sponsoring it in the U.S. House of Representatives.